Correlation Between Leyard Optoelectronic and Hangzhou Weiguang
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By analyzing existing cross correlation between Leyard Optoelectronic and Hangzhou Weiguang Electronic, you can compare the effects of market volatilities on Leyard Optoelectronic and Hangzhou Weiguang and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Leyard Optoelectronic with a short position of Hangzhou Weiguang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Leyard Optoelectronic and Hangzhou Weiguang.
Diversification Opportunities for Leyard Optoelectronic and Hangzhou Weiguang
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Leyard and Hangzhou is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Leyard Optoelectronic and Hangzhou Weiguang Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hangzhou Weiguang and Leyard Optoelectronic is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Leyard Optoelectronic are associated (or correlated) with Hangzhou Weiguang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hangzhou Weiguang has no effect on the direction of Leyard Optoelectronic i.e., Leyard Optoelectronic and Hangzhou Weiguang go up and down completely randomly.
Pair Corralation between Leyard Optoelectronic and Hangzhou Weiguang
Assuming the 90 days trading horizon Leyard Optoelectronic is expected to generate 3.85 times more return on investment than Hangzhou Weiguang. However, Leyard Optoelectronic is 3.85 times more volatile than Hangzhou Weiguang Electronic. It trades about 0.04 of its potential returns per unit of risk. Hangzhou Weiguang Electronic is currently generating about -0.26 per unit of risk. If you would invest 589.00 in Leyard Optoelectronic on October 7, 2024 and sell it today you would earn a total of 7.00 from holding Leyard Optoelectronic or generate 1.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Leyard Optoelectronic vs. Hangzhou Weiguang Electronic
Performance |
| Timeline |
| Leyard Optoelectronic |
| Hangzhou Weiguang |
Leyard Optoelectronic and Hangzhou Weiguang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Leyard Optoelectronic and Hangzhou Weiguang
The main advantage of trading using opposite Leyard Optoelectronic and Hangzhou Weiguang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Leyard Optoelectronic position performs unexpectedly, Hangzhou Weiguang can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Hangzhou Weiguang will offset losses from the drop in Hangzhou Weiguang's long position.| Leyard Optoelectronic vs. PetroChina Co Ltd | Leyard Optoelectronic vs. Gansu Jiu Steel | Leyard Optoelectronic vs. Aba Chemicals Corp | Leyard Optoelectronic vs. Yes Optoelectronics Co |
| Hangzhou Weiguang vs. Shenzhen AV Display Co | Hangzhou Weiguang vs. Everdisplay Optronics Shanghai | Hangzhou Weiguang vs. Xiamen Goldenhome Co | Hangzhou Weiguang vs. AUPU Home Style |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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